upGrad to Launch ₹100 Crore AI Incubator to Foster Innovation in Learning and Skilling

New Delhi, Feb 26: Edtech unicorn upGrad has announced an ambitious plan to establish an AI incubator with an investment of ₹100 crore to drive innovation in the learning and skilling sector. The initiative aims to incubate and invest in early-stage startups that are transforming education through artificial intelligence.

Speaking about the initiative, Ronnie Screwvala, Founder and CEO of upGrad, emphasized the need for innovation beyond traditional school and college curricula. "The learning and skilling space is evolving rapidly, and we need to explore innovative ways to address this segment," he said.

Strategic Investment in AI Startups​

upGrad plans to acquire minority stakes in 5-6 startups at an early stage, allowing them the freedom to innovate without the pressure of valuation concerns. "We don’t want to get into the valuation game as it becomes too onerous for a startup, but we want them to innovate in a more frugal manner," Screwvala added.

This initiative follows upGrad's recent announcement in Davos regarding the establishment of an AI Center of Excellence in collaboration with the Maharashtra government, backed by an investment of ₹2,150 crore.

Partnerships & Industry Expansion​

In addition to the incubator, upGrad has partnered with Microsoft to train 10 lakh STEM professionals in India within a year, focusing on AI skills. The company’s strategic investments indicate its commitment to disrupt and redefine the skilling and learning ecosystem.

AI Incubator’s Core Focus Areas​

The upGrad AI Incubator will support emerging companies working on:

• Cost-efficient growth strategies
• Scalable content creation through AI
• AI-driven one-to-many tutoring solutions
• Reducing testing fatigue and improving real-world applicability of knowledge
• Enhancing access to high-quality education

As part of this program, upGrad has already invested an undisclosed amount in ZuAI, a startup offering an AI-powered learning assistant tailored to address students' unique challenges.

Screwvala emphasized that education systems will witness drastic transformations in the coming years, with AI playing a pivotal role. "We are sitting at the epicenter, not only wanting to be disrupted but also to be the disruptor," he said.

With these strategic moves, upGrad aims to cement its position as a leader in AI-driven education while empowering startups to revolutionize learning and skilling in India.